A group representing General Motors, Ford and Chrysler parent Stellantis on Tuesday raised concerns about a trade deal that could cut tariffs on car imports from Japan to 15%, while leaving tariffs on imports from Canada and Mexico at 25%.
Matt Blunt, who heads the American Automotive Policy Council (AAPC) that represents the Detroit Three carmakers, said they were reviewing the agreement but "any deal that charges a lower tariff for Japanese imports with virtually no US content than the tariff imposed on North American built vehicles with high US content is a bad deal for US industry and auto workers."
Trump has threatened to hike tariffs on Mexico to 30% and Canada to 35% on August 1.
White House spokesperson Kush Desai defended the deal, calling it "a historic win for American carmakers by putting an end to Japan’s unfair auto trade barriers for American-made cars".
GM said on Tuesday its second quarter earnings took a $1.1bn (R19.32bn) hit from tariffs and expects the impact to worsen in the third quarter.
Stellantis said on Monday it expects more impact from US tariffs on vehicles and car part imports in the second half of 2025, reporting US President Donald Trump's tariffs had cost it €300m (R6.18bn) so far as the company reduced vehicle shipments and cut some production to adjust manufacturing levels.
In May, AAPC criticised Trump's announced trade deal with Britain, saying it would harm the US auto sector.
British carmakers will be given a quota of 100,000 cars a year that can be sent to the US at a 10% tariff rate, almost the total Britain exported last year.
"This hurts American automakers, suppliers and auto workers," AAPC said.
Trump in April softened the blow of his car tariffs by easing the impact of duties on parts and materials, but left in place 25% tariffs on imported vehicles.
He also extended a duty-free exemption for North American parts that comply with the US-Mexico-Canada trade agreement rules of origin.
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